Finance
posted by Anonymous .
A portfolio consists of three stocks. The weight, expected rate of return and systematic risk for each stock are provided in the following table.
Stock Investments Expected return
A $7,500 20%
B $10,000 15%
C $2,500 10%
Beta
1.5
1
0.9
a) Calculate the weights invested in stocks A, B and C, respectively.
b) Calculate expected return on the portfolio.
c) Calculate the systematic risk of the portfolio, i,e. the portfolio beta
Respond to this Question
Similar Questions

fiance
You want to create a $75,000 portfolio comprised of two stocks plus a riskfree security. Stock A has an expected return of 13.6 percent and stock B has an expected return of 11.4 percent. You want to own $30,000 of stock B. The riskfree … 
math/stock
You want to create a $75,000 portfolio comprised of two stocks plus a riskfree security. Stock A has an expected return of 13.6 percent and stock B has an expected return of 11.4 percent. You want to own $30,000 of stock B. The riskfree … 
Finance
If you invest 30% of your funds in Lucent stock, with an expected rate of return of 10%, and the remainder in GM stock, with an expected rate of return of 15%, the expected return on your portfolio is 
math (precalc)
Analyzing a Stock. The beta, B of a stock represents the relative risk of a stock compared with a market basket of stocks, such as Standard and poor's 500 Index of stocks. Beta is computed by finding the slope of the line of best fit … 
Finance
Suppose you are considering two investments, stock A and stock B. The beta of A is 1.20, and the beta of B is 0.80. Stock A has an expected return of 12% and Treasury Bills are yielding 3%. If the two stocks are fairly prices, what's … 
principle of investment
What is the expected return on a portfolio consisting of an equal amount invested in each stock? 
finance
How does an investor earn more than the return generated by the tangency portfolio and still stay on the security market line? 
Finance
You own a portfolio that has $1500 invested in Stock A and $2,600 invested in Stock B. If the expected returns on these stocks are 11.1 percent and 16.7 percent, respectively, what is the expected return on the portfolio? 
finance
5. Consider the following stocks, all of which will pay a liquidating dividend in a year and nothing in the interim: Market Capitalization ($ million) Expected Liquidating Dividend ($ million) Beta Stock A 800 1000 0.77 Stock B 750 … 
Finance
we have two stocks Stock A and Stock B, Both stocks have the same expected rate of return 11%, but have different Standard Deviation 12%, and 20% respectively. based on the information above can we conclude that any rational riskaverse …